ABSTRACT
This chapter describes that cultural theory is compatible with other things we know and argues that it can usefully be extended beyond the growth of spending per se to account for inability to deal effectively with perennial deficits. Just as an act is socially rational if it supports one's way of life, governmental budgeting is rational if it expresses the values and practices of the political regimes existing in that place and time. Governments may have two options: they can act in one way if they have sufficient leeway to manage spending; or they can make different kinds of choices if they have scope to manage their resources. If governments can manage both, they can also manage the overlap. Depending upon how they simultaneously mix increases or decreases in revenue and expenditures, governments can vary the size of the balance or imbalance. To understand budgeting by competitive individualists in market regimes, we must compare private and public budgeting.
